Greece downplays privatisation blow

conditions.

“Certain jokes have been heard that new measures will be taken because of (this) entanglement,” Prime Minister Antonis Samaras told reporters just as EU-IMF auditors review progress on reforms.

“These are jokes,” he said.
Samaras was referring to the privatisation of Greece’s gas distributor Depa, which fell through on Monday after Russian giant Gazprom pulled out of the bidding process.

The setback could cause a shortfall of at least US$912 million in the US$2,6 billion Greece needs raise this year under the terms of its EU-IMF fiscal bailout.

It came as a mission from the so-called troika of creditors — the EU, IMF and the European Central Bank — began a scheduled audit of Greek reforms and fiscal performance that will determine the payment of the next instalment of rescue funding under bailout agreements.

Greek media had earlier raised the prospect of additional budget cuts this year to make up the expected shortfall after the failure of the Depa sale.

The Athens stock exchange opened with a 3,39 percent fall yesterday.
It had registered a 4,69 percent drop on Monday.

Gazprom said on Monday that it was worried by mounting unpaid bills owed to Depa by independent electricity producers and industry.

“We did not receive adequate guarantees that Depa’s financial situation will not deteriorate until the deal is concluded,” said Gazprom spokesman Sergei Kupriyanov. — AFP.

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